The Beige Book says the economy continues to expand at a modest to moderate pace, reports CNBC's Steve Liesman.

Most economists and strategists expect the Fed to begin reducing, or tapering, QE late in the first quarter of 2014, though some sporadic strong data points, such as Tuesday's ADP jobs report, indicated strengthening.

The two most critical metrics for Fed policy are unemployment and inflation. The ADP report found a stronger-than-expected 215,000 private-sector jobs created in November, while inflation pressure remains muted.

"Price inflation is contained, with phrases such as 'minimal,' 'no change,' and 'stable' being common across most districts," the Beige Book said. "However, in New York, service-sector firms reported that price pressure was moderate and that a sizable number of firms were planning at least some price increases in the coming months."

Businesses reported concerns over not being able to find qualified workers to fill open positions, as well as increased costs associated with the Affordable Care Act.